Best Bad Credit Loan Options
Good loan can be a tool you need to get a handle on your finances, find some breathing room in your budget, and improve your credit. The providers need to be transparent. Whether it’s because you have a thin credit profile or a history of missed payments, a bad credit score will affect your interest rate and also bank’s perception of your ability to pay them back. Your loan may also be capped at a lower amount to help the lender lessen the risk, and you may even have to offer more collateral to secure a loan.
For bad credit loans the interest rates are usually high, it’s commonplace to see rates over 20%. Make absolutely certain that you can pay these rates, and that you don’t have better options. Borrowers with better credit are rewarded with lower rates, so if you’re able to hold off and improve your credit score, you might be able to qualify for better rate in a year or so.
One thing you need to know, is that bad credit means different things to different lenders. Some lenders will not consider your application if you have a credit score below a certain number, while others will make it a smaller part of their lending decisions. Read more about bad credit score.